https://dataroomsource.com/complete-guide-to-online-data-rooms/

Due diligence by investors is a vital part of any investment process. The more prepared you are, the faster your investors can finish their assessment. An investor data room makes the job a lot easier for everyone involved.

LPs will want to see a variety of documents including legal contracts, customer and supplier agreements and intellectual property documents market research, cap table financials, and many more. With the virtual dataroom, it is easy to share files with third parties. This also reduces the risk of sending outdated or duplicate copies. The ability to share these documents in a well-organized and easily accessible investor data rooms can also help to show your organization’s professionalism.

The investor data room is the ideal location to save and display your presentation deck (or investor pitch) for a prospective investor. While the investor presentation isn’t part of the due diligence supplementary data, many founders incorporate it to provide context and ease investors’ access to information they need.

Some founders use their investor data rooms to store various information for different investors. For instance some founders have a “draft” investor data room that they share with investors who haven’t yet made commitments, and a second set of documents for those who are close to making a commitment. This enables them to control the amount of information they disclose at any given point and ensures that the correct information reaches the right people.